IREN reactivated: FBR launches crackdown against tax evasion

According to the directions of Prime Minister Imran Khan, Federal Board of Revenue has lodged a crackdown against tax evasion in cigarette industry by reactivating Inland Revenue Enforcement Network (IREN).

Sources told Business Recorder here on Tuesday that several teams from Inland Revenue Enforcement Network (IREN), a sub-department of Federal Board of Revenue, have confiscated Illegal non-duty paid cigarettes worth millions of rupees.

The FBR has already constituted a joint committee for monitoring, vigilance and scrutiny to control illicit trade of tobacco sector and other specified goods i.e. beverages, sugar, fertilizers and cement.

Joint committee for monitoring, vigilance and scrutiny of the specified goods sector is constituted with immediate effect. The committee comprises DG Intelligence & Investigation (IR), Chief Coordinator, IREN, FBR, Central Field Coordinator, IREN, Coordinator Karachi Enforcement Hub, Coordinator Islamabad Enforcement Hub, and Coordinator KPK Enforcement Hub.

According to details, under the supervision of Additional DC Asif Rafiq, IREN Faisalabad region confiscated 170 cartons of illegal cigarettes; including 120 cartons of Visa brand, 30 cartons of Market brand and 20 cartons of Next brand. Number of these confiscated cigarettes is 17 million upon which over Rs 35 million duties and taxes were evaded. Sources also revealed that all of these cigarettes were provided by Progressive Cigarette Industry from Azad Kashmir.

Taking another enforcement action, IREN Peshawar region confiscated 30 cartons of illegal cigarettes from Kohat Road, while in another operation 1300 kg tobacco, filter rod and other commodities used in cigarette manufacturing were seized during checking. These materials were being transported to Rawalpindi without any legal documents. Similarly, under the supervision of AD Mumtaz Ali, IREN Hyderabad region seized 14 million illegal cigarettes from Latifabad during a raid on a warehouse. Duties and taxes of more than Rs 16 million were evaded over these confiscated cigarettes.

For proper monitoring, vigilance and scrutiny of the specified goods sector, the joint committee shall develop the detailed enforcement roadmap. Its enforcement mechanics would be based upon the prevailing laws, rules & regulations, emerging trends of tax evasion and remedial combating strategies adopted by IR Enforcement Network - an enforcement network being established along with detailed terms of reference through a separate order by the Board, in accordance with the requirement of Licensing Rules issued vide FBR's SRO250(I)/2019 dated 26.02.2019 to control illicit trade of tobacco sector and other specified goods i.e. beverages, sugar, fertilizers and cement.